Astavinayak Gramin Bigar Sheti Vs ITO (ITAT Nagpur)
Income Tax Appellate Tribunal (ITAT) Nagpur has condoned a 607-day delay in filing an income tax appeal by Astavinayak Gramin Bigar Sheti, setting aside an order by the Commissioner of Income Tax (Appeals) [CIT(A)]. The ITAT found the assessee had a “justifiable cause” for the delay, asserting it was unintentional and without malafide intent.
The case pertains to the assessment year 2017-18, where the assessee received an assessment order dated March 30, 2022, under Sections 147 read with 144 and 144B of the Income Tax Act, 1961. This order was served on the same day. However, the appeal to the CIT(A) was filed on December 20, 2023, resulting in a delay of 607 days beyond the statutory 30-day period.
The assessee argued that the delay was due to the “surrender” of the PAN under which the assessment order was issued. They claimed they were not actively monitoring or logging into the account associated with this PAN. Upon discovering the issue, they promptly filed the appeal, asserting that they should not be taxed on transactions already accounted for, and that their case held strong merits.
The CIT(A), in its order dated January 17, 2025, refused to condone the delay, citing several reasons. The CIT(A) highlighted that the reason of a “surrendered PAN” and cessation of monitoring the account did not constitute “sufficient cause.” It emphasized that taxpayers are expected to exercise due diligence regardless of PAN status. The CIT(A) also pointed out that ignorance of the law is not a valid defense, and timely professional assistance should have been sought.
